Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / A PART OF THE MAIN PRODUCT
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 3421 | 1990 | Gillette is trying to reemphasize the importance of the shaving system vs. the disposable razor. (Higher profit margins: 8-10 cents/disposable razor, vs. 25-30 cents/cartridge refill). Gillette's new Sensor is $3.75, well below Atra and Trac II, hoping to lure shavers from the older products. But cartridges will cost 25% more than those for Gillette's old systems, giving it about 8 cents more gross profit per cartridge. |
| 2 | 4813 | 1993 | AT&T has a new plan that is aimed at people who spend over $30 a month. Offers them 15% off standard rates and a 25% price cut on calls to a single area code. The plan carries no flat monthly fee or sign-up charge. |
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